Quiz (graded)
Quiz (graded)
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Aggregate demand is the total demand across an entire economy.
Fill in the missing word
Fill in the missing word
Fill in the missing word
What is labeled on the y-axis of the aggregate demand curve?
What does aggregate demand represent in macroeconomics?
An exchange rate appreciation will shift the aggregate demand curve to the left.
An increase in interest rates leads to a decrease in consumer spending and investment, resulting in a leftward shift of the aggregate demand curve.
An election looming may prompt the government to increase spending, boosting aggregate demand and shifting the curve to the right.
An exchange rate appreciation leads to a decrease in demand for exports and an increase in demand for imported goods, resulting in a leftward shift of the aggregate demand curve.
Disposable income increasing results in higher consumption, potentially leading to increased business profits and further investment, causing the aggregate demand curve to shift to the right.
If a country's major trading partners experience a recession, how might this impact the country's aggregate demand curve?
How would a sudden increase in consumer confidence affect the aggregate demand curve, assuming all other factors remain constant?
What impact would a government policy of increasing taxes significantly on consumer goods have on the aggregate demand curve?
